Publishers charge much higher prices for a book in hardcover than for the same book in paper cover because
A) the demand for hardcover books is less elastic at the same price.
B) the marginal cost of attaching hardcovers is very high.
C) there are larger sunk costs in the production of hardcover editions.
D) they have less bargaining power against bookstores in marketing paperback editions.
E) they want to subsidize students.
A
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Figure 19.1 displays changes in the size of private inventories. Based on the figure, in which month is the size of private inventories likely to have been lowest?
A) September 2010 B) September 2011 C) September 2009 D) March 2010
The permanent shut down point of a perfectly competitive firm, in the long run, is:
a. the minimum point of the AVC curve. b. the minimum point of the MC curve. c. the minimum point of the AR curve. d. the minimum point of the ATC curve. e. the minimum point of the AFC curve.